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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: stockman_scott who wrote (32439)3/6/2001 8:16:54 AM
From: Voltaire  Read Replies (3) of 65232
 
Morning Scott,

I don't see a powerful and sustained rally over the near term but I do see a gradual recovery to around 3000 on Naz because of the following;

Market has something constructive to look forward to with rate cuts on the way.

The econ. 101 crowd and all the chartist are still looking at Cup and Handles, V-bottoms, Bell-Bottoms, but mainly are locked into their Bell Curve thinking such as - WE MUST RETEST etc. as the train of Psychology passes them by.

Like I said, the only thing the market needs is for the Houses to begin to look forward and lose their fear in order to regain their control - THAT HAS OCCURED and it occurred last week.

Another overlooked factor by the WHARTON SCHOOL of BUSINESS crowd is a very simple thing that could be deduced by simply looking out their windows - THE COMING OF SPRING and the Seasonal Change plus the Psychological Positive effects of such.

The main thing now is to determine what stocks the Houses will be most interested in and that answer has already been given to us - all one has to do is go back over the last few weeks and list in order and also most recent in timing - THE MOST PSYCHOLOGICALLY REDICULOUS DOWNGRADES. All of us could list at least four or five - The most recent occurred this morning with YAHOO.

The main point I want to make this morning is - THERE SHOULD BE VERY LITTLE FEAR ON THE PART OF THE RETAIL INVESTOR AT THIS POINT.

The Houses chose the DOWNGRADE THEM INTO OBLIVION as the weapon of choice in order to recover their expected gains lost during their FEAR PERIOD imposed by the Fed. and they know now they will have a great year now as a result of their awesome DOLLAR COST AVERAGING and the poor unsuspecting retail investor loses once again.

THIS MARKET SHOULD HAVE AND SHOULD BE BOUGHT. Sorry but the perpetual scam continues. Welcome to the world of no change.

Mark these two down - RMBS and NEWP.

Have a good day all,

Volts
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